To worry that people think the price cap means unlimited energy

[Shortjanet]

I've read quite a few comments here where posters seem to think fixed or capped energy prices mean that you can pay a set or limited amount for unlimited energy. It's quite worrying to think how much debt people might run up. The way the headlines are describing it as "bills capped to £x" or similar is helping to fuel the misunderstanding (no pun intended) I think. AIBU to wish the media were being clearer that caps and fixes apply to each kWh used and standing charges, not the total you can pay.

Agree with all of this. The attitude that if people don't understand it serves them right is pretty horrible. Also the idea that it's a choice to use gas and electricity is mind boggling in 2022 UK. It's not like taking out credit for a car or mortgage. It's absolutely unavoidable.

@FrankLampardsBrokenHand

Martin Lewis tends to explain it fairly well in so much as if you currently pay £x you'll be paying £y, which people typically take in as its relatable to them. Saying your kwh price is 7.4p means little to most as there's no relatability to what a kwh looks like.

But people SHOULD look at their bills.

People know about meter readings. What do they think the meter is doing?

If you know that it is measuring in KWH and your bill says how many KWH you have used and you know what each one costs, you can see what your bill is.

People know that the more you buy of something, the more you pay.

You just need to know that the price of that 'something' has increased.

It's silly saying people SHOULD look at their bills. People SHOULD fully read and understand terms and conditions before they agree to them but I'll bet my life that less than 10% of people actually do.

I know several people who don't understand what kwh means, and they have no desire to understand. The number they provide from their meter is not in kwh unless its a smart meter which converts it.

If we want people to understand information it should be given in the simplest, most easily digested and understood way. Not doing that means you're shit at communication and if you're shit at communication you've failed. Then you factor in different rates at different times, different types of rate, rebates etc and the bill can get quite complex actually.

It is absolutely terrific that SOME people understand energy costs. But it isn't a life failure for those who don't. I could just as easily pick out something else that I understand perfectly well, but you probably would not.

It's silly saying people SHOULD look at their bills. People SHOULD fully read and understand terms and conditions before they agree to them but I'll bet my life that less than 10% of people actually do

I don't think it is. If you are get a bill, you should look at it to see if it's what you expect.

If you don't understand your bill, there are resources, charities and people out there who can help you.

If you get a bill and just pay it without checking, then you can easily be exploited, ripped off, confused etc.

It is absolutely terrific that SOME people understand energy costs. But it isn't a life failure for those who don't. I could just as easily pick out something else that I understand perfectly well, but you probably would not

But if it was something to do with running a household - then I would try and find out what it meant and if I did not understand, I would try and find someone who could help me.

Sorry, but the idea that there's a meter so of course you can't have unlimited doesn't work. Phone contracts often have unlimited SMS, unlimited data, unlimited minutes etc. It's all measured but you can stil pay for unlimited (capped?) It's totally opaque and I fear that will cause much hardship.

I know a fair few people who misunderstood their fixed tariffs. A friend of mine was disgusted that they had raised her ‘fixed tariff’ last month even though it was due to end in March next year. The reality is she’s been running a hot tub for the last six months so her usage has gone up by loads.

See - my bill for my phone tells me how much data, calls I get.

Because I take responsibility and look at my phone bill. It says I have unlimited calls clearly on my bill.

@cakeorwine are you being deliberately obtuse or are you really that stupid that you don't understand that everyone doesn't share 1 mode of thinking?

As I said, terrific for you that you apparently know everything. Except there's lots you don't know, but you're naive to the things you don't know. Similarly for many people who think they understand their energy costs but actually don't.

For example, you don't seem to understand that a non smart gas meter doesn't read in kwh and most people would have no clue how the numbers on their bill correlate to the numbers on their meter.

The answer is not to tell people to just learn it, the answer is to make the information easier to read and understand.

The answer is not to tell people to just learn it, the answer is to make the information easier to read and understand

Don't you think people who get a bill should take responsibility and try to understand what the bill is for?

This is your bill.

This month you used 800 KWH
Each KWH costs 25p

You owe 800 x 25p = £200

If people get a bill and just pay it without seeing if it's correct or trying to find out what it means, then more fool them.

Adults should take some responsibility for money matters. Or ask for help if they struggle. Which people do.

The answer is not to tell people to just learn it, the answer is to make the information easier to read and understand

I am not saying they need to learn it.

I am saying that an adult should take responsibility to read it and if they don't understand it, then find someone who can help them. Charities, friends, relations.

Don't just pay it.

For example, you don't seem to understand that a non smart gas meter doesn't read in kwh and most people would have no clue how the numbers on their bill correlate to the numbers on their meter

That's completely irrelevant.

They get a BILL.

Adults need to be able to take responsibility to read a bill. And to ask if they don't understand it.

Companies have help lines if people don't understand their bill

Its amazing that you cant put yourself in someone elses shoes for one second with some empathy and recognition of how some people literally dont know that they dont know

By the way my bill does not look like that above, its actually quite difficult to work out energy used, it doesnt tell me about kwh used, it just gives the readings

And dont talk to me about helplines, EON flex is only open 9-5, I am at work during those hours and cannot phone them then

Absolutely shocking service

Its amazing that you cant put yourself in someone elses shoes for one second with some empathy and recognition of how some people literally dont know that they dont know

Do you think people should take responsibility to try to understand what they are paying for when they get a bill?

I do think if people think of it like petrol it makes more sense for them. That if Petrol was capped at 1.60 or something then obviously depending on car, how many miles you drive each household would pay different amounts each month on fuel but all would be getting it at 1.60 a litre. You can cut the costs by driving less, changing car, not using the air con etc

Yanbu. Sadly 50% of the population are of below average intelligence. You just can't legislate for that.

Answering 'if I had 8 apples and Sue stole 3 apples, how many apples would I have?' doesn't really set one up for working out the finer points of their energy bill 20 years later... That’s the totality of maths education today, is it?

The maths I learned at school was more than adequate for working out my energy bill. And compound interest too.

Me too....a few years ago, friend switched to a different company...told everyone she was paying less....I looked at the bill and the unit and standing charge costs were the same as previous supplier...!!...some companies make it a little tricky to work out the best deal...some have high standing charge but lower unit costs...so need to apply some basic maths...which many do not seem to posess...!!

If someone knows they work say 15 hours a week and they earn £8 an hour, they get a pay slip - which is similar to a bill.

You get paid 15 x 8 = £120

And pay slips are even more complicated as they have Tax, NI, pensions, earnings to date

P60s and P45s are similar

I wonder how many people don't understand their pay slip?

Or their receipt when they buy vegetables, fuel etc. All the same idea
You buy a certain amount of something at a certain price per L, KG, Lb etc

Bills like this are everywhere.

Of course thats not up for debate

But you seem to be ploughing along obsessively without due regard for what people are saying

Gas and electric are not like other pay as you go services, for a start its not optional (unless you want to freeze), its not like having a car or having a mobile phone.
My OH lets social housing tenancies, he works with client groups who are extremely vulnerable, often without any knowledge at all about how to manage their utilities, they may have spent years in hostels or bed sits and now they find themselves in a one bed flat and need the utilities connected. There is such limited help out there now anyway, getting an appointment with the CAB is a task in itself and people often seek information from their mates, the news, papers, the TV and all of that information from the media has been deeply misleading on this matter.

Someone on a fb page/comments section said "Well it just means if you live in a big 4 bedroom house you'll be laughing whilst us in a small one bed flat will be subsidising them." 😱

They actually think everyone will be paying £2500 regardless of how much energy they use. Hence thinking someone in a 4 bedroom house will be paying the same if they have their heating on all day with 6 showers and 3 cooked meals as someone in a small one bed flat frying one egg and having one shower a week!

Yes, if it was presented and reported that way.

Of course if there were a number of schemes running where lets say you signed up for your petrol at various garages, perhaps I would sign up with shell and you would sign up with Tesco

And we would pay a montly DD for our petrol and be told its a 'fixed tariff' and the amount per month was spread over the year, perhaps based on the previous years mileage and then the price of petrol went up and was capped and the media kept reporting that the cap is now £3000 a year for the average driver

I wonder how many people would get confused if that was the only system that there had been for many of them. I still remember quarterly bills back in the day but many will only have ever been on a direct debit which disguises your usage to some degree

Of course thats not up for debate

And that's the key point

Bills in life are everywhere. Receipts, invoices, pay slips, buying goods.

I know there are people who struggle with bills. I know there are people who struggle to understand them, who struggle with the maths. I get that.

But I do think that as an adult, you need to take responsibility or get support if you don't understand a bill. There are resources out there and people willing to support others.

Otherwise you are going to be exploited, ripped off and potentially end up in a much worse situation.

There will always be some vulnerable people who can't do this. But most adults should be able to take responsibility or ask for support.

Thats what I am saying. That if electricity and gas prices were priced more like Petrol to the consumer there would be less confusion.

Get rid of standing charges which most people don't know why they pay them or factor them into the cost

Just have a capped unit price for electricity and gas. customers can choose between companies based on service, apps , options for payment etc.

I give up!

As another poster above has said, someone is posting about the cap thinking its just a blanket yearly cap. They would not be looking at their bills thinking that they dont understand it and ask for help, they dont know that they dont know it

and that is solely down to the way its reported
And just going back to someone's post above where the example is used about buying fruit and veg in lbs/kgs whatever, that is actually very rare now, they are sold in packs and its almost impossible to find out the weight per kg/gram because often they are written as price per unit, like a pack of 6 tomatoes or 3 courgettes

Retailers are not stupid, they know this makes it harder for people to work out the price per kg as easily as it used to be